The Group sells its products domestically through 2 distributing channels which are traditional trade and modern trade.
1. Traditional Trade
The Group place an emphasis on product distribution to fully cover the targeted areas in Thailand. In that regard, the Group aims to distribute its products through a network of agents that are managed by the Group.
The Group will select an agent in each province and select efficient Tier 2 Agent and Tier 3 Agent to be parts of network of the Group's product distribution. The structure of network of the Group's product distribution can be summarized as follows:
The Group will select efficient Agent in each province;
Together, the Group and Agent will select efficient Tier 2 Agent to distribute products on a district level;
Together, the Group and Tier 2 Agent will select efficient Tier 3 Agent to distribute products in each target area and thoroughly distribute the products to retail shops at sub-district level;
Sales teams and Bao Dang Girls Team will conduct marketing activities to introduce the products to retail shops.
The domestically distributions structure of The group for Traditional Trade.
For distribution through traditional trade, the Group will sell the products to the Agents without a buy back policy. In addition, the Group has a policy where the Agent has to make advance payment before the delivery of the products.
Moreover, DCM has expanded the business into distribution centers (DC) in order to facilitate cash van business, which will provide advantage for DCM to distribute its core products as well as new products to the consumers on time. Currently, there are 30 DC nationwide and 337 cash vans. In that regard, the Group are able to reach up to 320, 000 retail shops across Thailand.
2. Modern Trade
At present, the Group directly sells its products to modern trade such as convenience stores, supermarkets, and hypermarkets.
For the distribution through modern trade, The group sells the products to the modern trade without a buy back policy. In additional, the group has a policy to grant a credit term of approximately 30-60 days to such modern trade